What was reforms did Andropov introduce?
What were Kosygin’s Reforms?
Aim: To stimulate growth in light industry.
Tactic: Cut investment to inefficient farms and diverted the money towards light industry.
Successes: Improved incentives promoted the quality of goods. Provided greater freedom for managers.
Failures: Central planners did not agree with it. Caused a rebellion in Czechoslovakia so collapsed. (January - August 1968)
What did Brezhnev do about socialism?
Dropped the idea of achieving socialism by 1980 due to slow economic growth and high military spending. Pushed for ‘developed socialism’.
Imported goods from the West to lower prices - goals not fulfilled but living standards improved.
85% had televisions by 1980 and 70% washing machines.
What did Brezhnev do about military investment?
Increased military spending to 13%, increased the drain on Soviet resources.
The military - industrial complex made decisions without informing the Politburo. This resulted in Brezhnev being dragged into conflicts with the developing world.
What was the ‘Second Economy’?
People began to call the black market the second economy.
Brezhnev accepted the sale of illegal sale, which improved living standards but hindered the economy.
Why was there limited reform of the economy under Brezhnev?
Due to Khrushchev’s numerous past reforms and their failures, the idea of reform was discredited at least until the end of the 1970s.
Why did the Soviet economy decline?